Morgan Stanley Bitcoin ETP Draws $100M in 6 Days

Morgan Stanley's newly launched Bitcoin-backed exchange-traded product, MSBT, attracted more than $100 million in assets within its first six trading days, with all inflows coming from self-directed clients, according to Amy Oldenburg, the bank's head of digital asset strategy.

Oldenburg shared the details during a presentation at the Bitcoin Conference in Las Vegas. MSBT, the first such product issued by a U.S.-chartered bank, relies on Coinbase and BNY Mellon for custody and provides regulated exposure to Bitcoin. The rapid accumulation occurred before the product became available through Morgan Stanley's advisor-led wealth management platform, highlighting strong demand among investors acting independently.

"Every dollar of that capital came through self-directed channels, as the product hadn't yet been made available through our advisory services on the wealth platform," Oldenburg said.

Morgan Stanley recommends a 2 to 4 percent allocation to Bitcoin for certain clients, but adoption among its financial advisors has lagged. Oldenburg attributed this to an education gap rather than a lack of client interest, noting that about 80 percent of exchange-traded product holdings on...